Daily News: May 28, 2013

Barclays Arranges Second Lien Term Loan for Teine Energy

Teine Energy announced that it entered into a senior secured second lien term loan providing for $300 million of funds with a final maturity date of May 17, 2019. Pricing on the new term loan was set at L+625 with a 1.25% LIBOR floor, offered at 98.5.

The company said Barclays served as the sole lead arranger and bookrunner on the $300 Million senior secured second lien term loan, National Bank of Canada served as documentation agent and MCS Capital Markets, acted as syndication agent.

Teine said the proceeds will be used to refinance the company’s existing revolving credit line, to fund an expanded drilling program and for general corporate purposes.

The company concurrently refinanced its existing C$195 million extended revolving credit facility with a new C$159 million syndicated revolving credit facility. National Bank Financial acted as agent on the revolver.

The new revolving credit facility will be available for general corporate purposes and capital expenditures. The company entered into an amended and restated credit agreement to reflect the foregoing transaction.

Teine Energy is a private Canadian oil and gas exploration company that is majority owned by the Canada Pension Plan Investment Board.